HA NOI — Shares soared on both of the nation's stock exchanges yesterday on renewed investor hopes that the country might be seeing a subsidence of inflationary pressures and a concomitant easing in interest rates.
High interest rates and tight credit have been seen as crippling the stock market and cramping business growth for the past two years.
But the market could increase strongly in the second and third quarters as single-digit inflation may help the central bank reduce interest rates, said Dominic Scriven, chief executive officer of Dragon Capital, which has just issued an assessment of the Vietnamese stock market.
On the HCM City Stock Exchange yesterday, the VN-Index leaped in value by 2.65 per cent to close at 413.98 points. Advancers outnumbered decliners by a whopping 212-35 with more than 100 stocks hitting their ceiling prices. The value of trades also jumped by over 25 per cent over last Friday to VND684.9 billion (US$3.6 million), as trading volume reached nearly 49 million shares.
The VN-30 also leaped by 3.15 per cent to 465.44 points, with trades in shares tracked by the index accounting for over half of the day's market value. Insurer Bao Viet Holdings (BVH), Vietinbank (CTG), real estate developer Hoang Anh Gia Lai (HAG), steelmaker Hoa Phat (HPG), Sacombank (STB) and Vietcombank (VCB) all hit their ceiling prices. However, Ha Noi-based real estate developer Vincom (VIC) was among the 35 codes to fall.
On the Ha Noi Stock Exchange, the HNX-Index skyrocketed by 4 per cent, closing at 64.27 points. Gainers overwhelmed losers by a margin of 273-30, while the volume of trades surged 43.8 per cent over the previous session to 53.2 million shares. Value soared by 45 per cent to a total of VND439.6 billion ($20.9 million).
With over 13 million shares exchanged, Habubank (HBB) was the most-active share nationwide, closing up by 7 per cent.
The State Securities Commission would introduce extended trading hours on both the Ha Noi and HCM City exchanges beginning March 5, the Sai Gon Economic Times reported yesterday. — VNS